Story perspectives

Bank Indonesia raises rate 25 bps after rupiah slide

6/13/2026

Summary

Story summary

Bank Indonesia raised its policy rate by 25 basis points to 5.5 % on June 9 2026 to defend the rupiah after it slipped past Rp 18,100 per US $.
The rupiah fell past Rp 18,100 per US $ on June 8 2026, losing nearly 9 % year-to-date.
Foreign investors net-sold Rp 261 billion on Thursday, raising 2026 outflows to about Rp 78.5 trillion.
Early-June institutional sales exceeded Rp 1 trillion net as President Prabowo Subianto’s export centralisation and free-meals expansion spooked investors.

History

Historical Context

In July 1997, Thailand’s baht collapsed by about 50 % after abandoning its fixed rate, igniting the Asian Financial Crisis across Southeast Asia. The IMF approved a $17.2 billion rescue, while the Bank of Thailand lifted rates to 12 % to stem capital outflows. Bank Indonesia raised its rate to 5.5 % in June 2026, following Prabowo Subianto’s policies as the rupiah slipped past Rp 18,100 per US $ and investors withdrew Rp 261 billion. The 1997 crisis showed that swift tightening and credible external aid can stabilize currencies, prompting Jakarta to seek IMF advice and boost reserves.

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Story summary

Bank Indonesia raised its policy rate by 25 basis points to 5.5 % on June 9 2026 to defend the rupiah after it slipped past Rp 18,100 per US $.
The rupiah fell past Rp 18,100 per US $ on June 8 2026, losing nearly 9 % year-to-date.
Foreign investors net-sold Rp 261 billion on Thursday, raising 2026 outflows to about Rp 78.5 trillion.
Early-June institutional sales exceeded Rp 1 trillion net as President Prabowo Subianto’s export centralisation and free-meals expansion spooked investors.

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